Tuesday, 3 December 2013

An artical about "Realty Industry to be more transparent"


It is common knowledge that the dealings with the builders and developers are mostly complex, reisky and precarious. Now there appears asilver lining in the clouds. They are to become more simple, safe and reliable. The new steps initiated by some of the developers are designed to make it so. The confederation of Real Estate Developers Associations of India [CREDAI] has come up with a code of conduct for all its members that is aimed at bringing transparency in the business. More than 150 builders and developers at Nagpur have so far signed the Code of Conduct supporting the CREDAI-Nagpur said that they wanted all the members to adopt new guidelines of the association so that the customers could feel comfortable while purchasing the flat. They are also expecting that the initiative would improve the image of the builders and developers.

Santdas Chawla, Past President CREDAI-Maharashtra said thatthere were cases of false assurances to prospective home buyers by somedevelopers. Such wrong commitments on the part of handful of developers had created a sense of fear among the buyers. He further added that, with the new code of conduct in place, the system would generate confidence among the clients.

As per the code of conduct, all sanctions like approved plans and commencement certificates, NA permission, exemption order under Urban Land Ceiling Act etc., should be made available for perusal of the purchaser at the time of signing the purchase agreement.


The developer should normally commence bookings sale of flats premises only after obtaining sanction of Building Plans and obtaining commencement certificate and clearances from the competent authorities. Payments receivable under the agreement for sale should be scheduled according to the progress of the work and as per the provisions of the relevant acts or as may be mutually agreed  between the purchaser and developer.


The developers shall also incorporate necessary clauses in the agreement in order to enable the client deriving the rights to inspect the premises during the course of construction. The developer must ensure good quality materials and proper workmanship. Specifications as per agreements should be adhered to and statutory specifications of the local planning authority should be complied with Proper technical supervision on site should be ensured through qualified and experienced technical personnel in addition to usual qualified structural engineers and architects.

As an additional measure, CREDAI has also formed a consumersgrievances redres sal cell where in the complainants may raise their issues.


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